What is Affiliate Marketing? Perhaps the simplest way to explain affiliate marketing is that it is a way of making money online whereby you as a publisher are rewarded for helping a business by promoting their product, service or site.
There are a number of forms of these types of promotions but in most cases they involve you as a publisher earning a commission when someone follows a link on your blog to another site where they then buy something.
Other variations on this are where you earn an amount for referring a visitor who takes some kind of action – for example when they sign up for something and give an email address, where they complete a survey, where they leave a name and address etc.
Commissions are often a percentage of a sale but can also be a fixed amount per conversion.
Conversions are generally tracked when the publisher (you) uses a link with a code only being used by you embedded into it that enables the advertiser to track where conversions come from (usually by cookies). Other times an advertiser might give a publisher a ‘coupon code’ for their readers to use that helps to track conversions.
- Advertisers often prefer affiliate marketing as a way to promote their products because they know they’ll only need to pay for the advertising when there’s a conversion.
- Publishers often prefer affiliate marketing because if they find a product that is relevant to their niche that earnings can go well in excess of any cost per click or cost per impression advertising campaign.
Why Affiliate Marketing Can Work Well on Blogs
Affiliate marketing isn’t the only way to make money from blogs and it won’t suit every blog/blogger, but there are a few reasons why it can be profitable in our medium. Perhaps the biggest of these reasons is that affiliate marketing seems to work best when there’s a relationship with trust between the publisher and their readers.
I’ve found that as this trust deepens that readers are more likely to follow the recommendations that a blogger makes.
Read also: how to make money online through Google Adsense
However, the promotion of the wrong product can break the relationship between publisher and readers.
Affiliate Marketing – Easy Money?
While affiliate marketing can be incredibly lucrative it is important to know that affiliate marketing is not easy money. Most people who try it make very little as it relies upon numerous factors including:
- traffic (high traffic helps a lot)
- finding relevant products
- finding quality products
- building trust with your readers
- having a readership who is in a ‘buying mood’
- you being able to write good sales copy (and more)
There’s also some risk associated with affiliate marketing in that if you push too hard or promote products of a low quality you can actually burn readers and hurt your reputation and brand.